2012 was, to say the least, a roller-coaster year in the Chinese luxury and art markets, following several years of sustained double-digit growth and seemingly unlimited demand among the country’s newly wealthy.

However, this doesn’t mean 2012 was simply a natural continuation of 2011. Despite strong marketing pushes and more brick-and-mortar expansion into China this year, many brands saw more restrained buying among mainland Chinese consumers than in years past, indicating that economic fluctuations and slower economic growth in China could indeed be crimping demand.

At the same time, more scrutiny on government officials’ buying and gift-giving habits hit some brands harder than others, with several watchmakers and winemakers in particular seeing a dip in sales in the second half of the year.

Still, despite a somewhat tougher year, most luxury brands remain optimistic about China, and for good reason. As the Wall Street Journal recently noted, Prada sales in China leapt 33 percent year-on-year in the third quarter of the year, with the brand also attributing a 54 percent year-on-year increase in its Europe sales to Chinese tourists.

Even at the end of this summer, as some brands showed a steep decline in sales, others such as Hermès and L’Oreal, and luxury groups LVMH Moët Hennessy and PPR, boasted double-digit growth that defied observer fears of a sharp China drop-off. Recently, the Boston Consulting Group asserted that China will have surpassed the United States as the second-largest personal luxury market by 2015, accounting for $87 billion, 23 percent of the global market, and become the largest personal luxury market by 2020. Others, such as Bain, hold that China has already become the world’s largest luxury market.

In China’s art market, which overtook the United States to become the world’s largest art and antiques market in terms of auction and dealer sales in 2011, according to The European Fine Art Foundation, 2012 was also a more complex year for major auction houses. However, a hopeful sign for international players like Sotheby’s and Christie’s, and increasingly global Chinese houses like China Guardian and Beijing Poly, is that Chinese collectors have not lost their appetite for high-priced, top-tier art and antiques.

While demand for blue-chip Western art remains highly niche in auction hubs like Hong Kong, mainland Chinese collectors have continued to home in on well-known traditional Chinese ink painters, modernist “brand-names,” and blue-chip contemporary Chinese artists even as bidding and buying has become more selective.

From our perspective, the complexities of the China luxury and art markets in 2012, and what they mean for 2013, can be partly illustrated by these five trends:

1. Conspicuous Consumption May Be Down Now, But Look For an Uptick In 2013

A much-publicized crackdown by the central government in Beijing, and recent announcements forbidding lavish ceremonies and celebrations may be spooking China’s top baijiu makers and major luxury brands that now rely on China sales, but we don’t expect austerity to become the name of the game among China’s wealthy next year.

While the recent anti-corruption drive could dent luxury segments most often used for gift-giving purposes, one thing to keep in mind is that China is large, diverse, populous, and has a massive rising middle class that wants (often very conspicuous) high-end brands. In the year ahead, look for the inland middle-class, second-tier entrepreneurs, the stereotypical “coal bosses” and other emerging luxury buyers within China to remain conspicuous in their consumption. Also, don’t expect powerful, wealthy demographics in power centers like Beijing to stop buying luxury goods in 2013 after years of doing so. They’ll just change their behavior in other ways.

2. Top-Tier Consumers Going Obscure Amid Greater Scrutiny

Though newly wealthy shoppers in second-, third- and fourth-tier cities may just be buying their first Louis Vuitton wallet in 2013, greater scrutiny among co-workers or superiors will continue to drive China’s top-tier consumers towards boutique or obscure luxury brands. We expect this to be particularly true in the luxury watch and handbag markets. Signs are there, not just in China but around the world, that China’s more savvy shoppers are going niche in rising numbers. Though the vast majority of outbound Chinese tourist-shoppers — whether seen in Tsim Sha Tsui or the Champs-Élysées — continue to line up outside Chanel, Gucci or Louis Vuitton, less obvious (yet still famous) watchmakers like Breguet, heritage American shoemakers like Allen Edmonds, and top suitmakers on Savile Row are all welcoming more Chinese customers.

To compete, Chinese e-tailers spent the better part of the year prioritizing exclusive brand partnerships, with Shangpin collaborating with the likes of Sergio Rossi, M Missoni, Diane Von Furstenberg and Stuart Weitzman as well as more niche American labels like Cynthia Rowley, Laundry by Shelli Segal, Charlie Jade, Tracy Reese and label Milly. Chinese consumers themselves are also far more discriminating and demanding of perks — whether that means free shipping, liberal return policies, or hard-to-get exclusives — and they know they can get them.

Despite all this, it remains to be seen how long it will take for China’s luxury e-commerce market to truly hit its stride, and for leaders to consolidate their position. In 2013, we expect to see quite a few casualties, particularly among domestic Chinese e-tailers, and expect full-price O2O models to show the greatest potential, particularly in top-tier cities like Beijing and Shanghai. Inland, discounts will remain a top priority for middle-class consumers, and as such the “Wild West” atmosphere of the Chinese luxury e-tail market will likely stay intact.

4. Japanese Auto Brands Slump, German Brands Dominate, But UK & US Brands Catching Up

The complexity of the Chinese auto market in 2012 is difficult to summarize, with Japanese brands taking a nose-dive following the flare-up of a long-simmering territorial spat with China, German automakers seeing muted rises in sales compared to the last several years, Jaguar Land Rover having one of its best years ever in China, and US brands like Cadillac catching on with a younger luxury consumer class via savvy use of social media. Though we expect German brands Audi, BMW and Mercedes-Benz to continue to rule the high-end of the market in 2013, greater competition from their American and British counterparts, and the aforementioned greater scrutiny regarding government luxury purchases, could make the year ahead more difficult for perennial leaders like Audi in particular.

5. Chinese Wine Demand Making Some Burgundy Lovers See Red

China’s wine market also showed signs of continued maturation in 2013, as well as signs of overcapacity due to a glut of (not always professional) importers. This was particularly apparent at the high-end of the market, which is as dominated by French winemakers as China’s auto market is by German carmakers. While cashed-up wine newbies continued to home in on Bordeaux, the more educated buyer diversified his or her portfolio this year by investing even more in Burgundy, a development that hasn’t pleased everybody. In the wake of the Bordeaux boom and (muted) bust of 2010-2011, which saw prices for the likes of Château Lafite hit new highs owing to skyrocketing Chinese demand, some producers in Burgundy worry that too great an emphasis on the China market could ultimately hurt their prospects in traditional markets. (And hurt them as well if Chinese interest wanes and prices drop.) As Burgundy specialist Laurent Gotti recently told Le Parisien, ‘‘After having made the market price of certain Bordeaux explode in an irrational manner, [Chinese buyers are] now logically interested in Burgundy and its niche wines…They want everything that is the most expensive and are prepared to fork out incredible sums.”

Additionally, staking only three percent of total French wine production and experiencing lower harvest volumes in recent years, Burgundy — never a cheap wine — may grow even more pricey, a problem for bargain hunters. Thus, Burgundy wine may be facing opposite symptoms compared to cheese, as overwhelming Chinese investments are giving Burgundy drinkers everywhere a reason to fear a surge of speculative interest in the region and its wines. Burgundy’s notoriously conservative wine-growers have also been alarmed by the growing interest in buying Burgundy real estate among Chinese investors. This summer, outbidding a group of local vintners, Louis Ng, the 60-year-old Hong Kong COO of gambling tycoon Stanley Ho’s SJM Holdings, purchased Château de Gevrey-Chambertin from the Miteran family in Burgundy’s Côte de Nuits for a reported US$10 million, stirring a vicious backlash against foreign investments by some residents in Burgundy as well as greater France.